How the U.S. gift exclusion calculator works
There is no U.S. equivalent of a per-relationship gift allowance that resets every ten years. Systems built that way let a donor and a recipient start over once a decade. The United States works differently and on two levels: an annual exclusion per recipient per year that never has to be reported, and a single lifetime exemption that is cumulative for life. Anything above the annual exclusion is reported on Form 709 and permanently reduces the lifetime exemption; it is never restored by the passage of time.
The annual exclusion applies to each recipient separately, so gifts to several children or grandchildren each get their own exclusion. Spouses may elect gift splitting on Form 709 to treat a gift as made half by each, which doubles the exclusion available for that recipient but requires a return even when no tax is due. Whatever exemption is left at death carries over to the estate tax computation.
The figures shown are on a 2026 basis and both the annual exclusion and the lifetime exemption are indexed for inflation and have been changed by statute, so they are editable fields. Confirm the current amounts in the IRS instructions to Form 709 before filing. The tax shown applies the top rate to amounts above the exemption and is a simplified estimate.
This tool is an estimate for planning only. Actual liability depends on valuation, gifts of future interests, tuition and medical payments made directly to a provider, generation-skipping transfers, and state law. Review your plan with a CPA or estate attorney.
Frequently asked questions
No. It is cumulative over your entire life. Every taxable gift you report permanently reduces what remains, and the unused balance is applied against your estate at death.
Usually not. Gifts above the annual exclusion are reported on Form 709 and absorbed by the lifetime exemption. Tax is due only once cumulative taxable gifts exceed that exemption.